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February 3, 2021

Better Markets Sends Letter to Treasury Secretary, Financial Regulators Meeting to Review Market Chaos Involving GameStop, Other Stocks

FOR IMMEDIATE RELEASE

Wednesday, February 3, 2021

Contact:  Pamela Russell at 202-618-6433 or prussell@bettermarkets.com

 

Better Markets’ Letter to Treasury Secretary and Financial Regulators Meeting

on Issues Raised by Frenzied Trading in GameStop and Other Stocks

Encourages Regulators to Aggressively Enforce the Laws While Investigating

the Broad Range of Market Issues Highlighted by Recent Trading Events

 

Washington, D.C.  –  Dennis M. Kelleher, President and Chief Executive Officer of Better Markets, sent a letter today to Janet Yellen, the Secretary of the Treasury, and the other regulators meeting tomorrow to review the recent market chaos involving trading in GameStop and other stocks:

“It is welcome news that financial regulators are meeting to review the recent frenzied trading in GameStop and other stocks. Protecting investors, markets and systemic stability requires no less. The regulators must, however, proceed on two tracks at the same time: investigate and punish lawbreakers while also evaluating and reviewing the adequacy and applicability of rules, regulations and laws, as detailed in the letter we sent today.

“Moreover, while financial regulators must conduct thorough and comprehensive investigations of the visible, headline events, they must not allow the obvious to distract from the need for an equally thorough investigation into the fragmented, often predatory financial ecosystem that enables, if not incentivizes and guarantees, such disruptive and potentially dangerous activities. In addition, while the vehicles, methods and means for violating the law change, the duty to protect investors and markets while promoting systemic stability, capital formation, price discovery, and economic growth remain timeless and paramount. Therefore, regulators must aggressively use their vast and ample existing authority to investigate any violations of law and charge wrongdoers without fear or favor.

“Finally, while we applaud the regulators for meeting, we encourage the Treasury Secretary to formally convene the Financial Stability Oversight Council to lead and coordinate, with the support of the Office of Financial Research, a full review of all the many issues raised by current events.”

Our letter is available here and the related Fact Sheet issued yesterday is available here.

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Better Markets is a non-profit, non-partisan, and independent organization founded in the wake of the 2008 financial crisis to promote the public interest in the financial markets, support the financial reform of Wall Street and make our financial system work for all Americans again. Better Markets works with allies – including many in finance – to promote pro-market, pro-business and pro-growth policies that help build a stronger, safer financial system that protects and promotes Americans’ jobs, savings, retirements and more. To learn more, visit www.bettermarkets.com.

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